Reassessing FLSmidth (CPSE:FLS) Valuation After Its Quiet 29% One-Year Shareholder Return

FLSmidth (CPSE:FLS) has quietly outperformed the Danish market over the past year, and the latest leg higher is catching investor attention as they reassess the company’s mix of shrinking revenue but improving profitability.

See our latest analysis for FLSmidth.

At around DKK 450 per share, FLSmidth’s recent 1 month share price return of roughly 11 percent contrasts with a weaker 3 month patch, while a 1 year total shareholder return near 29 percent suggests momentum is still broadly constructive.

If this kind of quietly improving story appeals to you, it might be a good moment to explore fast growing stocks with high insider ownership and see what other under the radar opportunities are emerging.

With earnings growing faster than revenue and the shares trading only slightly below analyst and intrinsic value estimates, investors now face a key question: is this a genuine buying opportunity, or is future growth already priced in?

Most Popular Narrative Narrative: 4.4% Undervalued

With the narrative fair value sitting modestly above the last close, the story leans toward patient upside built on earnings quality rather than breakneck growth.

The analysts have a consensus price target of DKK446.75 for FLSmidth based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of DKK500.0, and the most bearish reporting a price target of just DKK344.0.

Read the complete narrative.

Want to see how shrinking revenue can still support rising margins and earnings per share? The narrative hinges on a bold profit trajectory and a premium future multiple. Curious which assumptions make that math work over the next few years?

Result: Fair Value of $470.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in mining capex and execution hiccups in restructuring could easily derail the margin story and challenge the current undervaluation case.

Find out about the key risks to this FLSmidth narrative.

Build Your Own FLSmidth Narrative

If you would rather dig into the numbers yourself and challenge these assumptions, you can build a complete view in minutes, Do it your way.

A great starting point for your FLSmidth research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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